Income Taxes

Our provision for income taxes consists of the following (amounts in thousands):



	Year Ended December 31,
	2014		2013			2012
Current:
State	$	350	$	519		$	765
Foreign	2,772		2,572			199
	3,122		3,091			964
Deferred:
Foreign	69		(457		)	2,243
	69		(457		)	2,243
Income tax provision	$	3,191	$	2,634		$	3,207

A reconciliation of our effective tax rate and the U.S. Federal statutory income tax rate is as follows:



	Year Ended December 31,
	2014		2013		2012
Taxes at statutory U.S. federal income tax rate	35.00	%	35.00	%	35.00	%
Dividends paid deduction and net operating loss utilization	(35.00	)%	(35.00	)%	(35.00	)%
State, local, and foreign income taxes, net of federal tax benefit	11.73	%	(1.71	)%	(4.20	)%
Effective tax rate	11.73	%	(1.71	)%	(4.20	)%

Deferred income tax assets and liabilities, net of a valuation allowance, represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes, and are determined using tax rates expected to be in effect when the deferred income tax assets and liabilities are anticipated to be paid or recovered. At December 31, 2014 and 2013, we had deferred tax assets of $2.4 million and $2.6 million, respectively, net of valuation allowances of $0.6 million and $0.5 million, respectively, and deferred tax liabilities of $3.1 million and $3.3 million, respectively, which primarily relate to different carrying amounts for financial reporting and for Australian income tax purposes related to our properties and operations in Australia. Because we are uncertain of our ability to realize the future benefit of certain Australian loss carry forwards, we have reduced our net deferred income tax assets by a valuation allowance, as noted above. The deferred tax assets primarily relate to depreciation differences and the deferred tax liabilities primarily relate to straight line rent adjustments.